Qualcomm Declines Broadcom's Merger Attempt

by menarate
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In the beginning of November Broadcom Corporation, an American fabless semiconductor company has offered $103 billion for purchase of Qualcomm – a pioneer in mobile phone chips, supplying so-called modem chips to phone makers such as Samsung, LG and Apple. Broadcom made its unsolicited bid in order to become the dominant supplier of chips around the world. Mobile chipmaker rejected the offer declaring that the company was “significantly” undervalued. Broadcom was not reached for comment.

The offer actually comes at a time of closing pending $38-billion acquisition of automotive chipmaker NXP Semiconductors NV by Qualcomm. Broadcom mentioned it was going to buy Qualcomm irrespective of whether it closes the NXP deal or not. In addition an approval of antitrust authorities might be required for making the deal. The management of Qualcomm said they were completely confident in their ability to create significant additional value for their stockholders. However perhaps it was not the last attempt and further negotiations may follow. In case Qualcomm agrees to sell its shares, the deal will become the world's largest tech deal.

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